Some currencies sometimes rise and sometimes fall, so when they fall we buy them until they rise and then sell them for a higher price. Is that permissible for us?
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The questioner : Some currencies sometimes rise and sometimes fall, so when they fall we buy them until their value rises and then sell them for a higher price. Is that permissible for us, with an explanation of the evidence?
The Shaykh : Yes. It is permissible for a person to buy currencies when they are cheap, and if their value increases, he sells them. It is also permissible to buy other goods when they are cheap and sell them if their value increases. The evidence for this is the generality of the statement of Allah the Exalted:[Al-Baqarah 2:275] Therefore, every sale is originally lawful until we are certain that it is riba (usury or interest). For this reason, we say regarding currencies: it is necessary for each party to take possession of the consideration that belongs to him. If I exchange currency with a person, he must hand it over to me and I must hand it over to him in the session of the contract. If the exchange of possession does not take place, this falls under the category of riba (usury or interest) that Allah has forbidden.
Therefore, we must pay attention to this issue, which is that the exchange of currencies requires the mutual exchange of possession by both parties in the session of the contract, and it is not permissible to delay the taking of possession. Yes.
The questioner : May Allah bless you, O honorable Shaykh, and may He magnify your reward for your generosity in speaking with us in this blessed session of the sessions of Nur 'ala al-Darb.
The Shaykh : Yes. It is permissible for a person to buy currencies when they are cheap, and if their value increases, he sells them. It is also permissible to buy other goods when they are cheap and sell them if their value increases. The evidence for this is the generality of the statement of Allah the Exalted:
But Allah has permitted trade and has forbidden interest
وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَاTherefore, we must pay attention to this issue, which is that the exchange of currencies requires the mutual exchange of possession by both parties in the session of the contract, and it is not permissible to delay the taking of possession. Yes.
The questioner : May Allah bless you, O honorable Shaykh, and may He magnify your reward for your generosity in speaking with us in this blessed session of the sessions of Nur 'ala al-Darb.